SINGAPORE: Money remittances remain the highest risk sector of being exploited for Terrorism Financing (TF) in Singapore, according to a report published on Monday.

The National Risk Assessment (NRA) 2024 report jointly issued by the republic's Home Affairs Ministry (MHA), Finance Ministry (MOF), and Monetary Authority of Singapore (MAS) said banks remained at medium-high risk for such activities since the last report issued in 2020.

"Emerging TF risks have been identified in new cross-border fast payment systems and online fundraising, considering Singapore's high internet penetration, and the prevalence of online banking, and the global surge in the digital economy driven by the COVID-19 pandemic," the report said.

As there is a growing risk of virtual assets being utilised by international terrorist groups, TF risks associated with Digital Payment Token (DPT) service providers have been elevated from medium-low to medium-high risk, necessitating increased industry vigilance against this evolving threat.

Cross-border cash movements, precious stones, precious metals, and precious products, and non-profit organisations remained at medium-low risks for TF in the republic.

Meanwhile, the report said Singapore's key TF threats stem from groups such as ISIS, al-Qaeda and JI; potential spillovers from the ongoing Israel-Hamas conflict and tensions in the Middle East; as well as radicalised individuals (locals and foreign workers) who are sympathetic towards the cause of these groups, particularly ISIS.

Among them, Singapore has convicted 13 individuals for TF offences from 2016 to date.

All of their TF activities were related to the raising and/or moving of funds out of Singapore using fairly unsophisticated channels and methods, such as through remittance agents to support terrorist activities abroad.

"Far-right extremism is also a growing security concern in many countries. While it has not gained significant traction in Southeast Asia, we cannot rule out that its anti-Islam and anti-immigration rhetoric may resonate with some individuals," the report said.

MHA, MOF and MAS, in a joint statement on Monday, said Singapore has developed and implemented a systematic and comprehensive whole-of-government approach to identify, monitor and mitigate TF risks.

"Singapore will continue to partner with industry players to implement strategies and measures to tackle TF threats. We will also closely collaborate with foreign counterparts, international organisations, and standard-setting bodies, such as the Financial Action Task Force (FATF)," they said.

The updated 2024 NRA articulates the latest TF threats and vulnerable sectors in Singapore, taking into account key developments since the last NRA in 2020, such as the evolving global and regional terrorism landscape, growth of the digital economy and financial services in Asia, and emerging TF risk typologies.